1. Field of the Invention
This invention pertains to computerized information management and processing systems generally, and more particularly to an apparatus and method for automatically evaluating the credit of a potential borrower and processing the potential borrower's loan application.
2. Description of the Background Art
When a potential borrower desires to obtain a loan for financing a home, vehicle, boat, jewelry or other substantial purchase, the potential borrower is commonly required to complete one or more various forms constituting a loan application. The information entered on the forms can be voluminous, and can include financial information such as account records, account balances, loan balances or the like, which is of a confidential nature. The information is then either manually evaluated or evaluated using the assistance of a computer-based system. In the process, the information may be reviewed by several people and presented in various written or printed formats. As a result, confidentiality becomes a problem as dissemination of the information increases and, as more people are involved in the evaluation process, the likelihood of human error increases. Such human error can lead to the information being misread or misinterpreted, incorrect information being input into a computer, and even the information be mixed up with another borrower's file. In addition, the evaluation process can be slow and tedious.
In an effort to reduce potential errors and expedite evaluation of the loan applications, automated loan evaluation systems have been developed. For example, U.S. Pat. No. 5,239,462 issued to Jones et al. on Aug. 24, 1993, discloses a method and apparatus for automatically determining the approval status of a potential borrower. This system, however, still requires use of a prepared loan application, in the form of an encoded input sheet. Further, the system relies on facsimile transmission of the encoded input sheet, which is susceptible to scanning errors as well as data transmission errors. In addition, the input sheet must be mechanically scanned a second time after being sent by facsimile transmission. U.S. Pat. No. 4,736,294 issued to Gill et al. on Apr. 5, 1988, discloses data processing methods and apparatus for managing vehicle financing. Again, this system requires use of an application form. In addition, the system is not fully automated, and provides hard copy printouts for use in the evaluation process.
Further, neither system provides the capability to select a particular lender, or perform a complete evaluation and approval of the loan with confirmation being forwarded directly to the lender as well as to the potential borrower. Nor does either system provide for the use of custom scoring models but, instead, uses scores provided by a credit bureau. Therefore, a need exists for a filly integrated credit evaluation and loan processing system which provides access to multiple lenders, and which provides for complete evaluation and approval of a loan. The present invention satisfies such need, as well as others, and overcomes the deficiencies in systems heretofore developed.